Factors affecting investors’ decision regarding investment in Islamic Sukuk
Qualitative Research in Financial Markets
ISSN: 1755-4179
Article publication date: 10 May 2019
Issue publication date: 23 May 2019
Abstract
Purpose
The purpose of this study is to examine the perception of UAE investors regarding their investment preference of Sukuk versus conventional bonds.
Design/methodology/approach
A modified questionnaire was used in this study with the objective of answering the research questions and testing the developed hypothesis. The survey was conducted on a sample of investors of the UAE Dubai Financial Market, which is one of the main exchanges where Sukuk are traded.
Findings
The results indicate that Sukuk features (characteristics) represent the most important influencing factor in the willingness of UAE investors to invest in Islamic Sukuk, followed by the religious factor, as strongly predicted, followed by the expected return and followed by the availability of information. Finally, the results indicate that there is no significant difference in investment in Sukuk among UAE investors based on investors’ gender.
Originality/value
The current study is considered the first of its kind conducted on the UAE. As far as the authors know, there are no studies that focus specifically on social and economic factors that affect the propensity of investors to trade in Sukuk.
Keywords
Citation
Duqi, A. and Al-Tamimi, H. (2019), "Factors affecting investors’ decision regarding investment in Islamic Sukuk", Qualitative Research in Financial Markets, Vol. 11 No. 1, pp. 60-72. https://doi.org/10.1108/QRFM-01-2018-0009
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited